The Fantastic Four beauty, a mum of two, took legal action against Belly Bandit bosses last year (11) after learning she had allegedly been named among a list of people who had used the item, which helps new mothers get rid of baby weight - even though she has never endorsed the product.
The Belly Bandit packaging also featured the tagline, "Jessica Alba's #2 Secret for a Fast Post Pregnancy Slimdown!"
The actress demanded $1 million (£625,000) in damages and a cut of the profits made while using her identity.
However, the case has now been dismissed after the two parties reached an agreement to put an end to the dispute.
According to TMZ.com, the star has received an undisclosed amount of damages over her claim, while bosses have also vowed to stop using her name to sell their dieting device.